The Wild, Wild West: Markets and economies from the Great Plains to Hawaii

However, this same region includes states like Montana, Utah and Wyoming, where unemployment hover in the 6 percent range, significantly lower than the 9.4 percent U.S. average.

Part of this discrepancy can be credited to the diversity of industries in the West–everything from large agricultural businesses to banking, transportation and high-tech, said Rick Dinger, president of IBA West, a trade association representing agents and brokers in California, Oregon, Washington and Alaska.

And because the region's economy offers a little bit of everything, it's inevitable that some types of business will be improving while others remain soft. According to the Federal Reserve's most recent Current Economic Conditions of the nation's 12 economic districts (known as the "Beige Book"), the West was showing "scattered signs of firming" at the end of the third quarter. Although retail sales were still flat, and shoppers remained focused on essentials, the cash-for-clunkers program helped boost traffic and sales. Tourism, a staple for many Western states, was weak in California and Nevada, but increased in Hawaii. Even the region's long-suffering real estate and construction markets showed an uptick in sales over the last 6 weeks of the report (through the end of August). The region even reported an increase in venture capital investment.

What follows is a state-by-state report of economic and insurance market conditions on the West Coast.

Read about market conditions in the Midwest ("Down by not out: The Midwest perseveres in spite of the economy") and on the East Coast ("The 800-pound gorilla: Costal property dominates East Coast insurance scene").

Alaska

Doing business as an independent insurance agent in Alaska is like nothing else in the country "because there are so many different, diverse obstacles," said Dave Hale, president of the IIABA of Alaska. From trying to describe risks to underwriters unfamiliar with the state to the logistics of traveling a limited road system to visit potential customers, the challenges are unique. "We're different from a lot of places in the country because you can't just jump into your car and go look at a risk, which makes the logistics of underwriting and loss control a challenge," he said. "In a lot of cases we have to go by boat, plane or four-wheeler, so it's tougher to manage and look at risk. It's also a long ways away from the rest of the country–traveling from New York to London takes less time than traveling from Fairbanks to New York."

Difficulty in doing business is reflected in the association's decrease in membership, based in part on many of the smaller, one- or two-person agencies going out of business, and the consolidation among larger agencies.

Alaskan business, traditionally driven by oil field-related services, construction, municipalities and schools, is starting to hurt, as are tourism and fishing in southeast Alaska.

Another challenge is the state's propensity for earthquakes and flooding, which makes it difficult to obtain property coverage. "Most carriers have a moratorium on the number of days after a quake when they won't bind coverage, and there are always quakes going on," Hale said. "Many carriers won't write it at all, especially newer builders' risk coverage. This is available but very expensive, and while we can use NFIP, that coverage only goes to a half-million dollars."

On the upside, Alaska has had a better economic run than more populated states in the West. Long the home base of a strong oil industry, Alaska has had little need for federal support ("Fairbanks and Alaska itself didn't get a lot of stimulus money"). In fact, current unemployment, at 8.3 percent in July, is among the lowest in the country.

"We have seen a lot less of the recession here because there were several big projects slated to go over the past summer, including military projects with several bases up here," Hale said. "However, that's dependent on government spending, and we expect to feel the pinch in winter and next spring, when money will dry up and we'll see tighter economic conditions."

On coverage pricing and availability, Alaska is "one of the first states to start feeling both a soft and a hard market," Hale said. That said, he is still seeing "plenty of capacity and lots of competition," and little indication that prices are firming. "We see some personal lines hardening, especially property in quake and flood-prone areas, but nothing much on the commercial side," he said.

The state has several insurers that call Alaska home, including Alaska National, the largest regional in the state, and Seabright for workers' compensation. Other insurers actively writing in Alaska include Ohio Casualty, Chubb, Zurich and Travelers.

Alaska also is home to "one of the best insurance directors in the country," Hale said: Linda Hall, "who stepped in at a critical time and helped clean up regulatory problems and other issues." During Hall's tenure, carriers have found it easier to get filings and licensing approved for nonresidents, improving competition. The Alaska IIABA also has a good relationship with state legislators, who have been supportive of agent issues.

In spite of the recession, this solid base of good regulation, markets and businesses will open up opportunities when the current bad economic conditions ease. "Because we have several different industries to develop, such as oil and fisheries, this will open up opportunities," Hale said.

Arizona

Arizona is not exempt to the economic crisis. The bad economic conditions have reduced payrolls and receipts of policyholders, and closed many small businesses. The construction industry in Arizona has substantially collapsed and employment–especially in the greater Phoenix area–is among the worst in the country at 9.2% last July compared to 5.7% in July 2008. The high unemployment means hardship for agents' clients and difficulty for those in the Independent Insurance Agents and Brokers of Arizona (IIABA).

IIABA represents 427 P-C independent insurance agencies, with 24 branch agencies in the state. The association has been able to keep its numbers growing, even now, because of aggressive marketing campaigns. The agencies, however, are shrinking in premium volume and employee count, said Steve Goble, president , the Mahoney Group, Mesa, Ariz., and state and national director for IIABA.

"The economic conditions in our area are horrible," Goble said. "The greater Phoenix Area is one of the highest unemployment rates in the nation. This is in large part because of the collapse of the building trades, which were on fire before the economic collapse."

In addition, tourism is one of the primary Arizona industries. Like other hot spots, tourism in Arizona is not performing well. On the state's residents, there is a high foreclosure rates on homes, which also are decreasing in value and there are few new starts for residential construction.

Construction defect claims have been a problem for some types of contractors, but pricing remains available and soft in other industries–especially personal lines. Arizona is not seeing a hardening of rates, or a lack of coverage availability overall, Goble said. "If there are increases it is in very few lines. Competition is alive and well in Arizona. The normal rules of a hardening market do not seem to apply."

While Arizona is free from extreme weather issues such as hurricanes and other natural disasters that attract personal and commercial lines carriers, it is a "fair" regulatory and legal environment, Goble said. Top insurers include Farmers Insurance Co. of Arizona, SCF Arizona, State Farm and American Family Mutual Insurance Co.

The state Dept. of Insurance continues to balance the need for consumer protections with the recognition that what is good for the industry is generally good for the consumer. However, Arizona's budget crisis has required the DOI to undergo staff reductions. Depending on economic recovery, the state legislature may reopen a proposal to expand the Continuing Education courses to all Arizona licensees, which would expand CE courses to the support employees. This concerns IIABA because "if it was mandated for all support staff, the agencies would be further burdened with the cost," Goble said.

California

The archetypal West Coast state, California, has it all: a variety of industries, cities and farms, catastrophic exposures, and a frequently crazy political landscape–"a little bit of everything," said Rick Dinger, president of IBA West and owner of Crescenta Valley Insurance, La Crescenta, Calif. With more than 850 members, IBA West is the largest regional trade association in the West, and the only one with a strong presence in Sacramento.

In a region noted for a hard-hit economy, California's is especially bad, with unemployment at 11.9 percent, as of July. For agents, the abysmal economy is evident in commercial payroll reductions and personal lines policyholders struggling to pay their premiums, Dinger said.

But California is more than just big cities like Los Angeles and Sacramento. Penfold-Leavitt Insurance Agency Inc., a 30-year-old agency located in Eureka in the "heart of the Redwoods," faces some unique economic challenges arising from dramatic changes to its traditional industries of logging and fishing.

"We feel the same pain as the rest of the U.S., but over the last 10 to 20 years, our entire Northwest Coast region has been forced to transition from a timber- and fishing-based economy to something else, and the same applies to coastal Oregon," said Darlene Penfold, president. "That transition, along with the economic downtown, has had a tremendous impact, especially for smaller communities."

Over this period, other businesses have developed in the region, such as manufacturing of rubber boats for government use and associated clothing, and technology-related business. Tourism is becoming a major factor. There is still some wood manufacturing business.

In the insurance world, the state has a reputation for not being "a very friendly place to do business," Dinger said. Case in point: Prop. 103, passed in 1988, which required insurers operating in the state to roll back rates 20 percent and established a prior-approval rating system. However, even in the current soft insurance market, California is now a good place for insurance market and product access, perhaps in part due to the influence of Republican Gov. Arnold Schwarzenegger. "I've been in the business since 1985, and at one time you couldn't even write home or auto in the state," Dinger said. "However, if we get a liberal governor, the environment could change quickly."

Market access means in part soft market conditions, and California is no exception, especially in personal lines. Although Dinger is seeing a hint of hardening in workers' compensation, most insurers are renewing insurance like contractors coverage with 5 percent reductions. This means that most commercial lines agencies' revenues are down about 20 percent on average, reflecting a convergence of the soft market, reduction in payrolls and sales figures, he said.

Some price hardening is developing in professional liability, specifically D&O and EPL, which has amounted to about 10 to 15 percent, Penfold said.

The carrier market leaders for IBA West members are Golden Eagle and Travelers; other insurers with a strong regional presence include OneBeacon, Hartford and CNA.

For coverage, D&O and EPL in the banking sector are growing businesses, especially with the propensity of attorneys to sue in the wake of layoffs, Dinger said. Earthquake coverage is "almost a commodity," although availability and pricing rise and fall. "This has been a tough part of our market; one day you can get a quote, the next there's a capacity issue," Dinger said. "One day there's a 10 percent deductible, the next they call you back and say it's 15 percent. Commercial lines earthquake coverage is elusive and concerning."

Top issues for agents are to meet budget, stay on track financially in a soft market, and deal with unemployment, reduced payrolls and sales figures, which are taking a bite out of premiums, Dinger said. "Unfortunately, our costs aren't down; health insurance and rents are still high," he said.

As to whether the state will see economic improvement soon, it is unclear. "The stock market is moving now, which is a good indicator, but we probably won't see an economic recovery until the end of this year, with companies rehiring. They're already too settled into their new budget constraints," he said.

Idaho

For insurance agents in Idaho, a state with large geographical territory and a population of about 1.5 million, the focus is on client-to-customer relations–an ideology that agents feel is being contradicted by recent federal government proposals.

In the midst of talk on Capitol Hill of greater federal regulation of the insurance industry, Idaho agents are holding strong to the belief that local regulatory offices provide the most expedient resolution to customer issues, said Diane Golder-Keys, legislative and education director of the Independent Insurance Agents and Brokers of Idaho (IIABI).

"We don't like the oversight–somebody back in Washington, D.C., doesn't know this person like a local agent does," she said.

According to Golder-Keys, agents think that regulation should be confined to the departments of insurance in each respective state, including regulation of the healthcare system.

"Even though we're a property-casualty agency, a lot of our agents have health departments, and they just are trying so hard to keep everything local," she said. "A lot of the bills going around in D.C. right now pretty much eliminate the use of independent agents as the instrument to handle a client, and there's just nothing better than your own agent to know what your exact needs are."

Though agents are concerned with the prospect of federal regulation, on the local level, according to Golder-Keys, there are few points of contention or concern.

"We feel fortunate that we live in a state where things are mostly positive," she said. "We just don't have the big issues that the larger states have. Everybody knows everybody here. We're big, geographically, but we pretty much know everybody, even those working over at the legislature."

Idaho, along with other low-population states such as North Dakota, Nebraska and Kansas, was delayed in feeling the effects of the recession compared to many Eastern states, Golder-Keys said. As of July, however, the state's unemployment rate has jumped to 8.8 percent–a 0.4 percentage point increase from just one month earlier, according to reports from the Bureau of Labor Statistics.

Contracting businesses in the state have been hit particularly hard by unemployment, leaving insurance agents with fewer customers, Golder-Keys said. "I had one agent tell me that he probably lost 9 percent of his business since last September," she added. "One of his contractors came in and said he had to lay off all his people."

Technology, another historically strong industry in the state, has been struggling, particularly in Boise and the surrounding area. Micron Technology and Hewlett Packard, two of the largest technology companies in the area, have laid off employees in high-paying positions over the past two years. The unemployment rate in the Boise metropolitan area was 9.7 percent in July.

"When the contracting and technology fields go, it affects all other businesses," Golder-Keys said. "Mainly we've lost the smaller agencies [at IIABI], because they're doing less business and probably can't afford the dues. But at the same time, the ones coming on board are new startup agencies, so there are people out there who see that this is the time to jump in."

Read about market conditions in the Midwest ("Down by not out: The Midwest perseveres in spite of the economy") and on the East Coast ("The 800-pound gorilla: Costal property dominates East Coast insurance scene").

Montana

Due to Montana's environmental diversity, certain parts of the state have been feeling the effects of the recession more severely than others. Rural Montana is seeing less of an economic downturn due to a consistently profitable agricultural sector, while the areas of the state that have long relied on construction and logging have been hit harder by declining demand.

The state had a 6.7 percent unemployment rate in July–almost double that of its rate from two years ago, according to data from the Bureaus of Labor Statistics. And fewer jobs have meant less spending in the general economy.

"Overall, people are simply not spending as much money and watching the bottom line more than ever," said Biskupiak, CEO of the Independent Insurance Agents Assn. of Montana (IIAM). "Even as the economy recovers, we recognize that the economy of less populated states will take longer to bounce back."

The insurance industry is hardly immune to the recession and unemployment. Last June, the Montana Insurance Dept. assumed the function of the Surplus Lines Stamping Office, which had been operated by the Montana Surplus Lines' Agents Assn. (MSLAA) for the past 19 years. The move, which occurred in spite of objections from industry representatives, resulted in the termination of five MSLAA employees.

"[It was] the most negative impact in the insurance industry this year," said Biskupiak, who also is a member of MSLAA, "but the association will continue to serve the surplus lines segment of our industry as an education and industry advocacy leader."

Though Montana is seeing its share of economic woes, insurance associations in the state have put a heavy emphasis on recruitment in recent years. The Montana Big I has been working with Miles Community College to develop the InVest education program, designed to attract new people to the insurance industry by offering a 2-year insurance degree. IIAM, meanwhile, has focused on building its Young Agents Committee, which works on developing leadership skills among newer agents.

Aside from the struggling economic environment, national healthcare reform ranks as IIAM's top concern. With many member agencies doing a sizeable amount of business through health care products and services, Biskupiak said, the formation of a single pay health care system could jeopardize the future of those independent agencies.

On a positive note, however, concern over the possibility of a healthcare overhaul has led to an increase in membership for IIAM, which currently has about 150 member agencies.

"Recently there has been more interest from agencies who are dedicated specifically to health insurance sales," Biskupiak said. "With the threat of national health insurance reform hanging over their heads, they are researching their options."

Though the prospect of federal regulation is a chief concern, IIAM has focused on assisting its steadily growing membership with state-specific needs. Recent legislation in Montana, for instance, mandates that agents take 3 hours of ethics courses every 2 years. To help members satisfy this requirement, IIAM partnered with the state chapter of Chartered Property Casualty Underwriter to conduct an ethics seminar last March.

IIAM has also been working to develop stronger relationships with key regulators in the Montana Department of Insurance. The current state auditor, Monica Lindeen, took office in January with a heavy focus on consumer advocacy.

"Perhaps our greatest challenge is convincing the insurance department that as independent agents, our main mission is providing products and services to our customers," Biskupiak said. "We believe there is an opportunity to work toward the same goals."

Nevada

For a state that has long profited from its thriving gambling revenue, Nevada is down on its luck.

The state's massive tourism industry took a hit beginning last October, when American International Group Inc. held a week-long company retreat at a luxury hotel in Monarch Beach, Calif.–just days after receiving $85 billion in bailout funds from the federal government. The insurance giant's $440,000 resort bill was met with public outcry and discouraged other large companies from holding big-budget luxury events–a trend that came to be known as the "AIG effect." Traditionally popular corporate destinations like Las Vegas suffered as a result.

"Last January was probably the lowest for tourism in Las Vegas because it was no longer popular to go to Nevada for a conference, and that had a very noticeable effect on tourism in Southern Nevada," said Kay Lockhart, president and CEO of the Nevada Independent Insurance Agents (NIIA).

As part of the AIG effect, private and government conventions in Las Vegas fell 27.5 percent in the first 6 months of this year, according to the Las Vegas Conventions and Visitor Authority, and declining tourism has forced layoffs in many hotels and casinos. The state's unemployment rate in July 2009 was at a historic high of 12.5 percent, the Bureau of Labor Statistics reported, well above the nation's unemployment rate of 9.4 percent.

"The Nevada economy is still construction, tourism and mining-based, and of those three industries, mining is the only one that hasn't really taken a horrible dive," Lockhart said.

Mineral and Eureka counties, sparsely populated areas that often see purchases of big mining equipment, were the only two counties in Nevada that did not see a decrease in June sales, the Dept. of Taxation reported. Numbers were down in the state's remaining 15 counties.

Reports also indicate that consumers are reluctant to spend in the economy. Taxable sales in Nevada fell 20.5 percent in June, marking the eighth consecutive month of double-digit declines, the Department of Taxation reported in late August. Sales declined in all major areas, but construction took the largest hit at 51 percent.

Though the state is in a recession, the NIIA is experiencing a period of consistent membership growth, including a 9 percent increase in 2008. With approximately 200 member agencies, NIIA recently has seen a larger number of applications from agencies with 10 or fewer employees–a trend that may have stemmed from layoffs from larger agencies, Lockhart said.

"Many of the larger national brokers are reducing their producer size right now. But many of those producers are business-savvy–they have books of business, and they're going out and starting their own agencies."

In an effort to stay afloat during the recession, member agencies that primarily do business with the three main industries in Nevada–tourism, construction and mining–have upgraded their technology systems and boosted their marketing strategies in recent months.

"Independent agents have always known the wisdom of technology, but they haven't always practiced what they've preached," Lockhart said. "They have upgraded their internal and external processes, their interface with the carriers. They've been advertising and marketing a little bit more to reach out to new and existing customers."

On the national front, Lockhart said that NIIA agencies oppose the prospect of federal regulation of insurance, which could erode the quality of service to the Nevada consumer, but believe that healthcare reform is ultimately necessary.

"Many members have departments that sell health insurance and really bring value to their clients through the whole process–the placement, the administration and the claims process," Lockhart said. "We know that some regulation and reform is necessary, but we don't want them to go too far off the cliff."

Lockhart said that agencies are wary of the relative anonymity of federal regulation and its potential to erode the personalized agent-to-consumer relationship that is prized within the state.

Customer service aside, face-to-face interaction and relationships are the foundation for much of the Nevada insurance industry, Lockhart added, and the importance of personal interaction should never be underestimated.

"You work in this industry through relationships and coalitions, and that should always be kept in mind," she said. "We have very strong relationships with our carriers, we've done some really good things here working with our friends in accident and health and life. We're very active in the National Big I, and we've learned that working together can't be anything but a plus."

New Mexico

Although families in New Mexico earn the country's 4th lowest annual salary, according to the Census Bureau's state medians for 2007, conditions are not as bad in this state as in other places, said Thom S. Turbett, president and CEO of the Independent Insurance Agents of New Mexico (IIANM).

IIANM represents 150 members. It adds an average of seven members a year for the last 5 years, and has only lost two members in 2009 due to the economic conditions.

"Construction and real estate are pretty bad, but our economy has a lot of government jobs–two national labs and four military bases. Plus there is a big Intel plant in Rio Rancho that keeps the economy from completely tanking."

Because of this, insurance agencies are holding their own, but some of the smaller agencies are having trouble. The agencies still in business find that pricing is inexpensive. Premium volume is falling in New Mexico, which means less commission income and more competition among agents and IIANM members.

As for hardening rates, "the only indication is a slowing of the rate at which renewal premiums are dropping, and a few workers' compensation carriers are not taking the suggested NCCI rate decrease last year," Turbett said.

Two major domestic carriers are the New Mexico Mutual Group, the market leader in workers' compensation in the state, and the Mountain States Insurance Group, a regional carrier for multiple lines. National carriers include Travelers, Hartford, CNA, Progressive and Metlife. Popular regional carriers include Colorado Casualty, Safeco, Allied, Union Standard and Republic.

These carriers help insure some of the key industries in New Mexico. The state has dairy farms in the southern part of the state, and oil and gas in the southeast and northwest corners of the state. Agents also write wildfire and hail exposure policies.

State legislators are concerned with workers' comp coverage for farm employees. They are currently excluded, but there is a growing push to get these workers covered, despite opposition from the farm employers. The state superintendent is an ex-insurance agent who understands the balance between consumer interests and company interests, Turbett said.

Federal regulation is not far from agents' minds. They prefer taking chances with an imperfect state regulatory system and fear what may emerge from Congress. Other national concerns at the state level are health insurance and credit scoring reform.

Utah

Main concern for Utah's agents? Surviving this economy, said Steve Baugh, executive director of the Utah Assn. of Independent Insurance Agents (UAIIA). UAIIA represents 100 members, and membership has been decreasing this year.

Despite the economic troubles, insurance pricing and availability is not a problem in the state and Baugh characterizes the regulatory environment as "conservative and good."

There are some signs of hardening rates in personal lines and Utah's earthquake exposure risks helps all lines. A few companies offer DIC policies to cover Utah's earthquake exposures, Baugh said.

Bear River, Allied, Met Life, Travelers and Auto Owners are the primary insurers in the state.

Washington

There's no question that it's been a tough year for insurance agents, but things could definitely be worse in Washington, said Michelle Rupp, owner of NRG Seattle, a 60-year-old family-owned insurance agency. "I talk to friends in other parts of the country, most recently California, and it is much more gloomy there," she said. "I think the outlook here is good."

Like Alaska, New Mexico and Montana, the recession hit Washington later than states like California and Nevada, and conditions are still fairly stable. The most recent unemployment figures for the state put it at 9.3 percent, still lower than the national figure of 9.8 percent.

"Things are going pretty well in the Seattle region. We're grateful that we have a variety of industries here–Boeing, Microsoft, Biotech–which helps us diversify," Rupp said.
"Things are slow, but certainly not dire. We still have lots of projects under construction."

NRG Seattle, a 60-year-old agency with 60 percent of its book of business in personal lines, is seeing "good markets and great pricing," Rupp said. In commercial lines, she notes an "opening in coverage availability that is hopeful. There is also a little bit of hardening, and we like to see that." Safeco, Liberty Mutual, Hartford, Encompass and Mutual of Enumclaw are some of the agency's lead insurers. The agency has also increased its use of wholesalers over the past several years.

Although there are no unique coverages in the region, the threat of earthquake is a concern.

When it comes to regulatory issues in the state, licensing requirements have "changed for the better," Rupp said. "Anything we can do to reduce administrative costs helps. We have a good commissioner (Mike Kreidler) who has a balanced approach."

In short, conditions in Washington state are not great, but could be worse, compared with other Western states. "After answering these questions, I realized how much optimism we feel in our organization," Rupp said. "I did some hard things earlier this year; I had to fire several long-term employees who just were not cutting it. I should have done this years ago, but anticipating tougher times, I bit the bullet. I am so glad I did this as it really allowed us to be ready to hit it hard when things perk up. "We have traditionally grown through acquisitions so now are positioning ourselves to grow organically."

Wyoming

In a state of just over 530,000 people spread across nearly 98,000 square miles, Wyoming residents are accustomed to a greater degree of personal, one-on-one communication–particularly in their business dealings.

According to Susan Worthington, executive vice president of the Association of Wyoming Insurance Agents (AWIA), it is not uncommon for an agent to maintain face-to-face relationships with all of his or her clients, addressing their needs on a highly individualized level. Consequently, the prospect of federal regulation is a chief concern among AWIA members, who fear that a federal bureaucracy will detract from the personalization so characteristic of the state.

"Right now, there are four people at the Wyoming Insurance Dept. that address consumer complaints, and consumers can call them, talk to them," Worthington said. "We're not going to see that at the federal level."

Congress endorsed state oversight of insurance in 1945 with the McCarran-Ferguson Act and later reaffirmed the state system with the Gramm-Leach-Bliley Act in 1999. In recent years, however, insurance industry lobbyists in Washington have pushed for a federal insurance charter and new regulatory system – something that Worthington believes would fail to address state-specific consumer and agent needs.

Many insurance agents in Wyoming also oppose the government-subsidized health care plans proposed in President Obama's health care reform package, citing the possibility of a widespread decline in private insurance dealings.

"We definitely need some health care reform–none of our agents disagree," Worthington said. "But for some of our members, 25 to 30 percent of their income comes from selling and servicing health insurance policies. It would put a lot of people out of work at our level, and put a lot more bureaucrats to work at the federal level."

Even without the prospect of public health insurance, Wyoming insurance agents have faced a decrease in business volume over the last several months. Agents must move around to find markets, leading to office cutbacks that contrast starkly with last year's trends.

"A year ago, if you could spell insurance, agents would put you to work, but now they're laying people off because they don't have the same volume of business," Worthington said. "And associations are concerned because it's a trickle-down effect–if our agents aren't doing well, then they're less likely to buy products that the association sells, and less likely to pay their dues."

With a rich supply of energy and natural resources, however, Wyoming is feeling the effects of the recession to a lesser extent than most states. According to the Bureau of Labor Statistics, the state had an unemployment rate of 6.5 in July, tying with Iowa and Oklahoma for the fifth lowest rate in the nation.

"We're not seeing the huge impact–the foreclosures, the empty buildings," Worthington said. "We're still seeing some construction, though it has slowed down."

Though Worthington predicts a slight increase in state unemployment in the immediate future, she anticipates a tightening of the market over the next several years, which will ultimately put agents on the road to recovery.

"Wyoming is pretty resilient," she said. "People hate to see a tightening of the market because it makes our job harder, but we do make more income that happens. And then we'll be able to hire people."